Small-town House Flip Worries

[Jeremy Parker]

I grew up in a smallish town (~34,000) and am looking to buy a home that my best friend still lives in. I have been looking for a house to flip (or, possibly, BRRRR) for a while, and I can get this house for $165k. Other homes in the neighborhood that are not updated typically sell in the $220k-$240k range. While the house is in good shape, there are some foundation issues that will cost ~$15k to fix, I'd like to create a better master bathroom, and I would like to open up, and redo the old, gally-style kitchen. I'm estimating that, all-in, this will cost $40k.

I'm worried that there may not be enough padding to make a profit on this, and I'm also worried that with the city being fairly small, that it might not sell quickly once I'm done (other properties in the area seem to sit for a month or two at least). Can anyone weigh in here? I would love to hear your thoughts.

Thank you,

Jeremy